Airpoints Dollars conform to the standard definition of a currency – they are a medium of exchange for goods and services, they can be used to store value through time, and they are a quotable unit of account. Air New Zealand operates a fixed exchange rate policy for its currency, where one Airpoints Dollar can be redeemed for one New Zealand dollar worth of flights.

Furthermore, in addition to being a currency, the Airpoints Dollar loyalty scheme also adds to Air New Zealand’s bottom line. Air New Zealand is the sole institution with the ultimate authority to issue the Airpoints Dollar currency and back-of-the-envelope calculations show that the value of the airline’s loyalty scheme could be around $400 million.

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http://www.tvhe.co.nz/wp-content/uploads/logo-for-enfold-photoshop.png00Infometricshttp://www.tvhe.co.nz/wp-content/uploads/logo-for-enfold-photoshop.pngInfometrics2014-02-07 08:00:272014-02-02 09:10:44The Reserve Bank of Air New Zealand